Ethiopian Airlines Struggles to Recover Eritrean Funds

Ethiopian Airlines remains unable to access its frozen funds in Eritrea, a dispute that forced the suspension of flights to Asmara last year. CEO Mesfin Tasew described the issue as political, noting that legal efforts to reclaim the money had failed. “We pursued legal measures to recover the money through the courts, but the efforts were unsuccessful. Therefore, the issue is a political decision,” he told local media.

The airline halted its daily Addis Ababa–Asmara flights in September 2024 after its Eritrean bank accounts were blocked. The route had been served mostly with Boeing 737-8 aircraft. The suspension marked a setback in bilateral ties, which had only resumed direct air services in 2018 after two decades of hostility following a border conflict.

Despite the standoff, Mesfin confirmed that Ethiopian Airlines continues to operate through Eritrean airspace for its international flights, denying reports of restrictions.

Financially, the carrier posted record revenue of $7.6 billion for the fiscal year ending June 30, 2025, reflecting 8% growth. It carried 19 million passengers—15.1 million international and 3.9 million domestic—alongside 785,323 tonnes of cargo. The airline also expanded its fleet with 13 new aircraft, including Boeing and Airbus jets, and launched six new international routes.

Looking ahead, Ethiopian secured a $500 million loan from the African Development Bank to help fund its new Bishoftu International Airport, designed to handle 60 million passengers annually with future expansion to 110 million. The project is central to the airline’s 2040 growth strategy.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com